What Is Electronic Retailing (E-tailing)? How Electronic Retailing (E-tailing) Works


Rising disposable Income and Rapid Urbanisation



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Rising disposable Income and Rapid Urbanisation:
Annual disposable income in India is expected to increase at CAGR of 5.1% and expected to be USD 3823 by 2015.According to 2011 Census, the Urbanisation showed an exponential growth rate of 2.76% . We have around 337 million people who live in urban areas in 2011. The census data shows that the no of statutory towns increased at the rate of 6.37% during 2001-2011. There is steady increase of urban agglomerations at therate of 23.7% during this period. These trends can enhance the prospects of online retailers.
Convenience Factor:
Online retailers are moving towards enhancing the convenience factor and thus attracting the shoppers to use this channel. Moreover the growth of the mobile communication has led to the growth of the online retailing as people are more accessible to internet 24 x 7. Like in the case of purchasing from the physical market we have to wait for the shop to open and certainly we try to get our merchandise before the shop closes, but in case of online retailing there is no time limits involve all you need is a internet connection and money in your pocket to pay the price and every thing is at your door step
Payment Mode:
As compare to the earlier days where we have to make the payment in advance and wait for our order for weeks, now we make the order first and make the payment when the goods are delivered to us, WatchKart.com, lenseKart.com, FlipKart.com, etc. are some of the examples. 3. Delivery: For general type of products line DDV, CD, Goggles, books etc., are being delivered to the customer in 2 to 3 working days and the goods which are required to be produced like special print sarees, customized bags etc., are delivered within 5-6 working days. Moreover single unit of any product chosen by the customer can also be delivered transborder, which may not be possible to import in case of physical purchase.
Inability of on-line retail players to sway customers from offline mode to on-line retail channel:
Lack of proper marketing and advertisement, inability to create a brand image, lack of proper usage of all possible on-line means like search engines, paid marketing, on-line ads, social networking, blogs etc to reach the customers. Inability of online retailers to drive the values a customer can derive by shopping on on-line channels.

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